Cost-of-Living Adjustments

Closed Plan Benefit Recipients

• COLA increases are applied to your benefits in October each year for Closed Plan benefit recipients.
• If you were employed before August 28, 1997, your annual COLA rate will not be less than four percent or more than five percent until the total increase equals 65% of your initial benefit. After reaching this cap, your annual COLA rate will equal 80% of the increase in the CPI-U, with an annual maximum of five percent. This includes work-related disability recipients employed before August 28, 1997, who became disabled before July 1, 2004.
• For those employed after August 28, 1997, the annual COLA rate will equal 80% of the increase in the CPI-U, with an annual maximum of five percent.

Year 2000 Plan Benefit Recipients

• COLA increases are received on the anniversary date of your retirement or BackDROP date for Year 2000 Plan benefit recipients.
• The annual COLA rate for Year 2000 Plan benefit recipients will equal 80% of the increase in the CPI-U, with an annual maximum of five percent.

2011 Tier Benefit Recipients

• Members of the 2011 Tier who retire directly from active service receive COLA increases on the anniversary date of their retirement. The same is true for the survivor COLAs.
• Members of the 2011 Tier who retire from a terminated-vested member status will receive their first COLA increase on the second anniversary date of their retirement. The same is true for survivor COLAs.
• The annual COLA rate for 2011 Tier benefit recipients will equal 80% of the increase in the CPI-U, with an annual maximum of five percent.

How Was the 2026 COLA Calculated?

Cost-of-Living Adjustments (COLAs) are calculated using data from the Consumer Price Index for All Urban Consumers (CPI-U).

The 2024 annual average of 313.509 is subtracted from the 2025 annual average of 321.943. The difference between the 2024 and 2025 annual averages is 8.434, which is then divided by the 2024 annual average (313.509).

The result of that calculation is 2.690%, which represents the average percentage increase from 2024 to 2025. According to Missouri state statute, the COLA amount will be 80% of the percentage increase in the CPI-U. Therefore, the final calculation involves taking the average percentage increase of 2.690% and multiplying it by 80%, resulting in 2.152%.

Consumer Price Index for All Urban Consumers (CPI-U)

Gross increase: (321.943 − 313.509) / 313.509 = 2.690% × 80% = 2.152%

History of COLA Rates